Erin, the owner of Sweets To Eat Ice Cream Shoppe, wants to know how her company is operating from a financial perspective. Her CPA has given her the following numbers: Sales $325,000, Operating Profits $50,000, Current Assets $125,000, Current Liabilities $40,000, Total Assets $350,000. The ice cream retail industry norms include Operating Profit Margin 10%, Return on Assets 11% and Current Ratio 2.7. Determine the company's liquidity and compare the value to the industry ratios.

Question

Erin, the owner of Sweets To Eat Ice Cream Shoppe, wants to know how her company is operating from a financial perspective.  Her CPA has given her the following numbers:  Sales $325,000, Operating Profits $50,000, Current Assets $125,000, Current Liabilities $40,000, Total Assets $350,000. The ice cream retail industry norms include Operating Profit Margin 10%, Return on Assets 11% and Current Ratio 2.7. Determine the company's liquidity and compare the value to the industry ratios.

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The Answer of Erin, the owner of Sweets To Eat Ice Cream Shoppe, wants to know how her company is operating from a financial perspective.  Her CPA has given her the following numbers:  Sales $325,000, Operating Profits $50,000, Current Assets $125,000, Current Liabilities $40,000, Total Assets $350,000. The ice cream retail industry norms include Operating Profit Margin 10%, Return on Assets 11% and Current Ratio 2.7. Determine the company's liquidity and compare the value to the industry ratios.

Erin, the Owner of Sweets to Eat Ice Cream Shoppe